(Individual or component costs of capital) Compute the cost of the following: rate is 32 percent. constant dividend-earnings ratio of 30 percent. The price of this stock is now $27, but 5 percent flotation costs are anticipated. d. A preferred stock paying a dividend of 9 percent on a $120 par value. If a new issue is offered, flotation costs will be 11 percent of the current price of $178